Gold, Silver, Platinum Forecasts – Gold Retreats As Dollar Tests Yearly Highs

Gold Moves Lower As Traders Focus On FOMC Economic Projections

Gold is losing ground as traders remain focused on Fed decision and changes in Fed policy outlook.

Yesterday, Fed left the federal funds rate unchanged but raised its federal funds rate projections for 2026, 2027, and 2028. According to updated projections, the federal funds rate is expected to reach 3.8% in 2026, 3.6% in 2027, and 3.4% in 2028. Put simply, the central bank expects that it would raise rates in 2026 and would not rush to cut them in the next two years. Higher interest rates are bearish for gold and other precious metals that pay no interest.

Traders also focus on U.S. dollar’s strong rally. U.S. dollar gained strong upside momentum against a broad basket of currencies after Fed Interest Rate Decision and Warsh’s comments. U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, tested yearly highs.

Strong dollar is bearish for gold as it makes it more expensive for buyers who have other currencies. In addition, dollar’s strength may force central banks in developing countries to sell gold to provide support to local currencies.

Gold settled below the $4300 level and is moving towards the nearest support, which is located in the $4180 – $4200 range. A successful test of the support at $4180 – $4200 will open the way to the test of the next support at $4020 – $4040. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

Silver Tests Support At $65.00 – $66.00

Silver is under strong pressure as gold/silver ratio climbed above the 63.50 level. In case gold/silver ratio settles above 63.50, it will head towards recent highs near the 65.50 level, which will be bearish for silver.

The nearest support level for silver is located in the $65.00 – $66.00 range. In case silver manages to settle below the $65.00 level, it will head towards the next support at $61.00 – $62.00. A move below the $61.00 level may trigger a strong sell-off in silver markets.

On the upside, silver needs to settle above the $72.00 level to have a chance to gain sustainable upside momentum in the near term. If silver climbs above $72.00, it will head towards the 50 MA at $75.11.

Platinum Remains Under Pressure

Platinum moved lower amid broad sell-off in precious metals markets, which was triggered by changes in Fed policy outlook. Strong dollar has also put significant pressure on platinum markets. Palladium markets were down by -2.3%, which was bearish for platinum.

From the technical point of view, platinum attempts to settle below the support level at $1680 – $1700. In case this attempt is successful, platinum will head towards the next support level, which is located in the $1600 – $1620 range. A move below the $1600 level will open the way to the test of the $1500 level. From a big picture point of view, market sentiment remains bearish, and platinum will need significant positive catalysts to break the current trend.

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